Mass resignations at Look Communications
Toronto-based Look Communications has appointed Robert Ulicki, Grant McCutcheon and Henry Eaton to positions on the company's board of directors. All three are also board members of Unique Broadband Systems, a Look shareholder. In addition McCutcheon will take over as chief executive officer and interim chief financial officer. The appointments followed the mass resignation of the former Look board yesterday morning, as well as the resignations of CEO Gerald McGoey and CFO Jason Redman. Two seats on the board remain vacant as of this writing. According to a statement, Ulicki, McCutcheon and Eaton were named to the board by the outgoing directors without their written consent. "Although we are pleased to have a new board coming into place at Look without the time and costs associated with calling a special meeting of shareholders, we are surprised and disappointed by the manner in which it has occurred and the apparent taxing of shareholders by insiders for their self-interest," said McCutcheon. "The former Look board were told on numerous occasions by us and our legal counsel that they are trustees of Look's cash pending its distribution to shareholders and, as such, not to make out of the ordinary course payments or distributions, yet it appears they went ahead and paid out substantial sums prior to abruptly resigning from the corporation. We have serious concerns about the former board and management's conduct and intend to initiate a full review of their actions." According to the new board, Look financial statements filed after the resignations show payments to several law firms totaling $1.55 million since the end of May, ostensibly in connection with the indemnification of various directors, officers and consultants of Look.